a

Question 2 (past paper) At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information: (1) Service charge by bank, $100. (2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200. (3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony's account by the bank and returned with the notation "NSF." (4) Harmony's records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015. (5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400. (6) Harmony's check no. 18114, issued in payment of $1,960 worth of supplies, correctly written in the amount of $1,960 but erroneously recorded in Harmony's accounting records as $1,690. Required (a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015. (b) Give any journal entries that should be made as a result of the bank reconciliation